CHAPTER 4 – MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

MEASURING INFORMATION TECHNOLOGY’S SUCCESS

-          Key performance indicator – measures that are tied to business drivers

-          Metrics are detailed measures that feed KPIs

-          Performance metrics fall into the nebulous area of business intelligence that is neither technology, nor business centered, but requires input from both IT and business professionals

EFFICIENCY AND EFFECTIVENESS

-          Efficiency IT metric – measures the performance of the IT system itself including throughput, speed, and availability

-          Effectiveness IT metric – measures the impact IT has on business processes and activities including customer satisfaction, conversion rates, and sell-through increases

BENCHMARKING – BASELINE METRICS

-          Regardless of what is measured, how it is measured, and whether it is for the sake of efficiency or effectiveness, there must be benchmarks – baseline values the system seeks to attain

-          Benchmarking – a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and producers to improve system performance

-          Comparing efficiency IT and effectiveness IT metrics for the government initiatives

EFFICIENCY IT METRIC

·         Measure the performance of the IT system itself including throughout,speed and availability.

·         lots of useful information

EFFECTIVENESS IT METRIC

·         Measure the impact it has on business processes and activities including customer satisfaction, conversation rates, and sell-through increases.

·         The extent to which our services are prefer by many consumers.

METRICS FOR STRATEGIC INITIATIVES

-          Metrics for measuring and managing strategic initiatives include;

·         Website metrics.

·         Supply chain management (SCM) metrics

·         Customer relationship management (CRM) metrics

·         Business process reengineering (BPR) metrics

·         Enterprise resource planning (ERP) metrics

WEBSITE METRICS

SUPPLY CHAIN MANAGEMENT METRICS

CUSTOMER RELATIONSHIP MANAGEMENT METRICS

BPR and ERP Metrics

-          The balanced scorecard enables organizations to measure and manage strategic initiatives.